Home / Knowledge / News / Fashion / Children's Place to exit Disney business in North America
Children's Place to exit Disney business in North America
Mar '08
The Children's Place Retail Stores Inc provided an update on its plans to exit the Disney Store North America (DSNA) business in order to focus on its core namesake brand. The Company conducts the DSNA business through its subsidiary Hoop Holdings LLC and its subsidiaries (Hoop) under a license agreement with The Walt Disney Company.

As previously announced on March 20, 2008, The Children's Place Retail Stores Inc decided to exit the DSNA business as part of the Company's review of strategic alternatives. As part of the review, the current management team determined that the license agreement, originated in 2004, requires substantial investments that are not expected to deliver economic returns.

The Company also took into account the losses incurred by DSNA's operations, DSNA's current earnings prospects as a licensee, and the restrictions imposed by the license agreement on the sale of the business to a party other than The Walt Disney Company. It was therefore concluded that the Company will be in a better position to maximize value by focusing on its namesake Children's Place brand.

Importantly, this action is only one component of a broader strategy to maximize shareholder value. As announced last week, the management team is undertaking a number of initiatives to reduce expenses, streamline operations, and lower inventories and capital expenditures.

Also, as previously announced, the Company and Hoop have been engaged in advanced negotiations concerning the transfer of a substantial portion of the DSNA business to The Walt Disney Company. In connection with these negotiations, Hoop's Board of Directors has determined that with limited strategic and financial options available under the license agreement, Hoop's only alternative was to file bankruptcy proceedings.

In a separate press release, Hoop announced that it commenced a Chapter 11 case for the reasons described above. It also intends to pursue the transfer of a substantial portion of the DSNA business to an affiliate of The Walt Disney Company in order to maximize proceeds available to its stakeholders. By filing such a case, Hoop also expects to complete an orderly wind-down of the rest of its affairs.

The transaction under negotiation is subject to the satisfaction of certain conditions, including approval of the U.S. Bankruptcy Court and is targeted for completion by April 30, 2008. In the event that the transaction as agreed to by the parties is approved by the Court, the Company would be released from any liabilities and all claims that have been or might be asserted by The Walt Disney Company.

Must ReadView All

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Rwanda to pay tax of exporters affected by AGOA suspension

Apparel/Garments | On 18th Jun 2018

Rwanda to pay tax of exporters affected by AGOA suspension

Rwanda will take over the tax obligations of its apparel exporters to ...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Kaizad Hansotia

Competition is the best thing that can happen to a startup

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search